RENEWABLE CHEMICALS MARKET ANALYSIS

Renewable Chemicals MarketSize and Trends

Renewable chemicals, commonly known as bio-based chemicals, are obtained from various renewable sources such as organic waste products, agricultural waste, agricultural feedstock, microorganism, and biomass. Due to lower carbon constituent and environment-friendly characteristics, renewable chemicals have emerged as potential substitutes for petroleum-based chemicals. Increasing awareness and growing demand for methanol and ethanol in the pharmaceutical industry is a major factor that is expected to fuel growth of the renewable chemicals market during the forecast period. Europe is expected to hold dominant position in the renewable chemicals market, followed by North America. This is mainly attributed to inclination of the populace and industry players towards adoption of novel and technologically advanced green products. Asia Pacific is also expected to witness significant growth during the forecast period backed up by supportive government policies and low labor cost. Renewable chemicals are used in various applications such as agriculture, food & beverages packaging, and biomedical. Technology applied for manufacturing renewable chemicals from biomass includes thermo chemical conversion, enzymatic hydrolysis, dehydrative transformation, fermentation and bioconversion, production of Fischer Tropsch diesel, and acid hydrolysis.

Renewable Chemicals Market Outlook – Surge in End User Demand is Augmenting Market Growth

Emerging technological breakthroughs, inclination of the populace towards eco-friendly products, and supportive government policy are fueling growth of the renewable chemicals market. Moreover, the growing demand for ethanol & methanol, green packaging materials, and consumer goods packaging materials is expected to boost the market growth during the forecast period. Abundant raw material, cheap labor cost, and increasing demand for renewable chemicals in China and India is expected to propel growth of the market for renewable chemicals. Rapid urbanization and industrialization in emerging economies of Asia Pacific is further expected to amplify demand for renewable chemicals across various end-use industries. Stringent regulation by EU on the use of fossil fuels has compelled manufacturers and researchers to focus on R&D of new technology that may replace fossil fuels.